by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – FIRST National Bank (FNB) is upbeat about the future after largely defying the impact of the coronavirus (COVID-19) over the past months.
The only major setback in the financial results for the financial year ending June 30, 2020 was the bank’s pre-tax profits declining by 30 percent, mainly driven by a significant increase in credit impairments.
However, the bank still delivered a respectable return on equity (ROE) of 25,8 percent and a resilient operating performance, with pre-provision operating profit flat year-on-year.
FNB achieved customer growth across both its premium and commercial segments, including upward migration of customers from its consumer segment, to maintain 8,23 million customers for the financial year.
Deposits were up 17 percent while loans and advances were up 3 percent.
“The pandemic has reinvigorated our commitment to helping customers in every context and we are inspired to further accelerate our platform journey in the months ahead,” said FNB Chief Executive, Jacques Celliers.
“We are equally grateful to our frontline and other essential staff who continue to help customers beyond the call of duty.”
In support of the re-opening of the economy, FNB branches are now operating at full capacity.
“We are encouraged by evidence of green shoots in consumer and business economic activity, and we hope to see this accelerating even further to boost economic recovery,” Celliers said.
FNB’s relief covered instalments on approximately 606 000 agreements for retail and commercial clients.
Whilst most of commercial clients had already received relief from FNB, as at end of August the bank had also approved in excess of R1,2 billion on the Government-backed COVID-19 Loan Scheme.
– CAJ News